Diamond focused Emu NL (ASX: EMU), formally known as Emu Nickel, has placed 5,050,000 ordinary fully paid shares at $0.10 per share and with free attaching contributing shares on a one for five ratio. The placement raised around $500,000.
The company said that the new funds will be allocated to its South African operations, and in particular for acquisitions.
Emu is the 50% owner of Superkolong (Pty) Ltd which company operates a diamond tailings operation at Kimberley, South Africa.
During the June quarter 2013 the company made good progress improving plant availability, with a spreader conveyor added to the end of the coarse residue conveyor, with a puddle tank incorporated into the pans circuit, and new earthmoving equipment was purchased - with other small upgrades also made.
During the period 26,420 carats were recovered, with 24,649 carats sold, with funds received R28.27 million (around A$3.1 million).
Pursuant to the terms of the sale agreement for Superkolong, the purchaser (being Itakane Trading 243 (Pty) Ltd jointly owned by Emu and Batla Minerals) is required to make payments of R25M, R35M and R35M on 1 September 2013, 1 March 2014 and 1 September 2014 respectively.
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